On February 3, Chile launched the Fintech and Open Banking Law, significantly advancing its financial sector.
This law introduces new opportunities for financial product and service innovation, transforming the consumer experience.
Angel Sierra from FinteChile highlights the law’s role in setting standards for financial service providers, including crowdfunding and advisory services.
The legislation modifies key financial laws, affecting public corporation concepts and share registration.
Sierra notes that this brings certainty to the market, fostering innovation and inclusion.
A major highlight is the establishment of a legal framework for tech-based financial services, including crypto assets, now regulated by the Financial Market Commission (CMF).
Crypto assets gain recognition as payment methods with the Central Bank‘s expanded authority to include stablecoins.
This move aims to level the playing field for fintech companies, easing their market entry.
Additionally, the law introduces an open banking system, allowing the sharing of financial data among providers, which is expected to spur new financial offerings.
Solange Berstein, CMF president, marks this as a milestone, emphasizing the balance between customer protection and industry growth.
She notes the complexity of regulating an already active but previously unregulated sector.
The forthcoming regulations, expected by mid-2024, will detail the implementation of the Open Finance System, marking a significant shift in Chile’s financial ecosystem.
This law not only supports new company growth but also changes how financial interactions occur, promising a diverse and innovative market landscape.